EXPLANATORY STATEMENT
Issued by Authority of the Minister for Health and Ageing
National Health Act 1953
Determination under paragraph 1(bj) of Schedule 1
(HIB 29/2006)
Schedule 1, paragraph (1)(bj) of the National Health Act 1953 (the Act) provides that the Minister may determine the minimum levels of benefits payable by a registered health benefits organization (RHBO) for hospital treatment provided to contributors, other than in emergencies, in a hospital or day hospital facility with which the RHBO does not have a hospital purchaser-provider agreement (HPPA) which covers such treatment. These benefits are known in the industry as “default benefits”.
The current determination dated 19 September 2006 (HIB20/2006) (the Determination), is comprised of seven schedules setting out the minimum benefit levels payable for a range of hospital treatment. These include benefits for nursing home type patient accommodation.
This determination amends Schedule 4 of the Determination to correct an administrative oversight in the making of the Determination. It specifies that the private hospital default benefit in all states and territories will be $73.80 instead of $74.70.
Consultation
No consultation was undertaken in the making of the Determination as the instrument is mechanical in nature. The changes are linked to the biannual change to the pension increase, which occurred on 20 September 2006, and do not substantially alter existing arrangements for the private hospital sector.
This determination is taken to have commenced on 20 September 2006. Although this determination is of retrospective effect, it will not infringe subsection 12(2) of the Legislative Instruments Act 2003. This is because this determination reduces the liability of RHBOs and patient contribution rates are unchanged.
PRIVATE HEALTH INSURANCE BRANCH
DEPARTMENT OF HEALTH AND AGEING
SEPTEMBER 2006